Budhanilkantha in the context of "2021 Nepal census"

Cities and towns in Nepal are incorporated under municipality. A municipality in Nepal is a sub-unit of a district. The Government of Nepal has set-out a minimum criteria for municipalities. These criteria include a certain population, infrastructure and revenues. Presently, there are 293 municipalities in Nepal among which 6 are metropolis, 11 are sub-metropolis and 276 are municipal councils. Other than that there are 460 rural municipalities totaling 753 local level government within Nepal.

Kathmandu, the capital, is also the largest city. In terms of area, Pokhara is the largest metropolitan city covering a subtotal of 464.28 km while Lalitpur is the smallest, with an area of 36.12 km. Ghorahi is the largest sub-metropolitan city with an area of 522.21 km where as Dhangadhi is the largest sub-metropolitan city by a population of 204,788. Budhanilkantha with a population of 179,688 is the largest municipality followed by Birendranagar with a population of 154,886. In terms of area, Sitganga is the largest municipality with an area of 610.43 square kilometres (235.69 sq mi).

The Kathmandu Valley (Nepali: काठमाडौं उपत्यका), also known as the Nepal Valley or Nepa Valley (Nepali: नेपाः उपत्यका, Nepal Bhasa: 𑐣𑐾𑐥𑐵𑑅 𑐐𑐵𑑅, नेपाः गाः), National Capital Area, is a bowl-shaped valley located in the Himalayan mountains of Nepal. It lies at the crossroads of ancient civilizations of the Indian subcontinent and the broader Asian continent, and has at least 130 important monuments, including several pilgrimage sites for Hindus and Buddhists. The valley holds seven World Heritage Sites within it.

The Kathmandu Valley is the most developed and the largest urban agglomeration in Nepal with a population of about 5 million people. The urban agglomeration of Kathmandu Valley includes the cities of Kathmandu, Lalitpur, Bhaktapur, Changunarayan, Budhanilkantha, Tarakeshwar, Gokarneshwar, Suryabinayak, Tokha, Kirtipur, Madhyapur Thimi, and others. The majority of offices and headquarters are located in the valley, making it the economic hub of Nepal. It is popular with tourists for its unique architecture, and rich culture which includes the highest number of jatras (festivals) in Nepal. Kathmandu Valley itself was referred to as "Nepal Proper" by British historians. As per the World Bank, the Kathmandu Valley was one of the fastest growing metropolitan areas in South Asia with 2.5 million population by 2010 and an annual growth rate of 4%.